Russian Central Bank Lifts Restrictions on Interest Rates on Car Loans
OREANDA-NEWS. The central bank announced a series of measures aimed at the maintaining of the stability of the Russian financial sector in terms of volatility in the foreign exchange market and a sharp tightening of monetary policy. In particular, banks are allowed not to apply temporarily the limit values of the total cost of consumer credit.
According to "Za rulem.RF", on Wednesday the Bank of Russia has taken a number of measures to maintain the stability of the Russian financial sector. In particular, according to the regulation of the Central Bank it is written: "temporarily (until 01/07/2015) you should not to apply the limit of full values of the total cost of consumer credit (loan) at the conclusion of credit and microfinance institutions, credit cooperatives and pawnshops of agreements of consumer credit (loan)".
Recall, a sharp increase of the key rate of the Central Bank, which took place on Tuesday, affected all loan programs and auto loans as well. Nevertheless, banks are forced to comply with established earlier standards of CB. The first quarter of 2015 they were: on secured car loans the marginal rate for new cars or used car up to 1 thousand km - is no more than 20.32% per annum, for used cars with a longer run - is no more than 31.22%".
After the central bank lifted the bar restrictions temporarily, the rates on car loans banks can install on their own, by focusing on the needs and market opportunities.
"Removal of restrictions - is one of the measures taken by the Central bank to maintain the stability of the banking system. On the valid, before the increase of the key rate, conditions, banks would not be able to issue credits in 2015. It is beneficial in the first place, of course, the banks, but also it is the benefit for customers - they will be able to borrow. We can hardly expect the annual too much high rates, because we have a lot of banks and they compete with each other. The Central Bank in November of this year for the first time published a limitation for the first quarter of 2015. At the moment there is no such limitations "- says an expert of credit products in portal Banki.ru, Irina Chebalova.
In the banks managers are hesitant to comment themselves, but informally they say that now everyone is busy by revising of lending rates and they issue only previously approved loans by the old rates until December 20th. If the buyer applies to the bank for a loan today, instead of the minimum 14%, the same loan will be offered him already at already 20% per annum. For used cars on car loan the rate reaches 31% per annum. Some banks even have temporarily suspended service of car loans - some of them before the New Year, other for one month. Source from "Za rulem.RF" reported that, for example, "Absolut Bank" issued an order to suspend domestic car loans for an indefinite period.
Meanwhile, the Russian President, Vladimir Putin, said that the high level of the key rate, which was established by the Central Bank, will be held the whole period, associated with the unfavorable external economic conditions. Economy will be adjusted to work in conditions of low energy prices.
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